UNIVERSAL REGISTRATION DOCUMENT 2023

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

Internationally, the overall net combined ratio of the PAA model (Property and casualty insurance and Health/protection) improved over the period (-4 points to 96.5%). This change is the result of several factors observed in 2023: the effect of claims discounting, which led to a 1.5 ‑ point improvement in the combined ratio under the influence of the increase in rate curves; ❯ a current weather loss experience net of reinsurance, which accounted for 7.4 points of insurance revenue in 2023 ( versus 2.4 points in 2022), reflecting an additional net retention of €114 million compared with last year; ❯ a slightly better cost of serious claims (+0.3 point) compared to last year; ❯ a 1.0 ‑ point improvement in the attritional loss experience to 54.2%. This change was driven by the underwriting performance in Property and casualty insurance in the main countries (Italy, Romania and Hungary) under the effect of rigorous portfolio management to contend with high inflation; ❯ changes on previous years, which improved significantly by 5.2 points compared to the previous year, particularly in Italy and for GOM. This increase occurred within a 2022 setting marked by very strong inflation effects in some countries on pending claims and the highly favourable settlement of certain claims; ❯ the operating expense ratio was stable at 35.2% in 2023 despite inflationary pressure that weighed on wages, logistics and IT services. ❯ 6.1.4.4 Financial businesses The economic operating income of financial and banking businesses totalled €35 million in 2023 versus €42 million in 2022. These figures include Groupama Asset Management’s income of €30 million as at 31 December 2023, with a decline of

The VFA net underwriting margin increased by €17 million over the period. This improvement masks a slightly smaller release of CSM compared to last year (-€6 million) as well as in AR (-€1 million) and smaller experience variances compared to the previous year (-€21 million). However, these factors were more than offset by a reversal of costly policies (linked to the interest rate environment) in Italy, resulting in a net change of +€46 million. Internationally, the recurring financial margin (before tax) amounted to €103 million in 2023, up €23 million over the period. The change in the other elements is explained in particular by the change in the tax expense based on the underwriting income. This item includes other non ‑ underwriting income and expenses, tax on recurring income, and income from equity ‑ method entities. As a result, the net income from international insurance totalled €141 million as at 31 December 2023, compared with -€14 million as at 31 December 2022. It includes non ‑ recurring financial income, which increased by €33 million over the period. As a reminder, 2022 net income included a loss of €34 million in respect of discontinued operations (Turkish subsidiaries).

€5 million over the period due to the increase in operating expenses. The economic operating income of the other entities (Groupama Immobilier, Groupama Épargne Salariale, and Groupama Gan Reim) represented €5 million in income in 2023.

6.1.4.5 Groupama Assurances Mutuelles and holdings Holdings (in millions of euros) 31.12.2022

31.12.2023 Change in value

Change

Financial and other income Recurring financial margin

(28)

(28)

0

Other items

(90)

(85)

5

5.6%

Other operating results

(149)

(165)

(15)

-10.7%

Other items

(1)

1

2

>100%

Recurring tax

60

78

18

30.0%

ECONOMIC OPERATING INCOME

(118)

(113)

5

4.2%

Capital gains realised net of tax

104

(62)

(167)

<-100%

Impairment charge net of tax

0

(3)

(2)

<-100%

Changes in fair value net of tax

(2)

0

2

100.0%

Income from ordinary activities net of tax

(6)

0

6

>100%

Financing expenses net of tax

(54)

(54)

0

Net income from discontinued business activities

0

(6)

(6)

<-100%

NET INCOME

(76)

(238)*

(163)

<-100%

* Including results from disposal of Turkish activities (-€110 million).

190

Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES